---
kind: "section"
citation: "48 C.F.R. § 31.201-4"
title: "48"
number: "31.201-4"
heading: "Determining allocability."
url: "https://uscodex.org/cfr/48/31.201-4"
---

# §31.201-4. Determining allocability.


A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship. Subject to the foregoing, a cost is allocable to a Government contract if it—

- (a) Is incurred specifically for the contract;
- (b) Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or
- (c) Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.

## Notes

### Authority

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42301, Sept. 19, 1983, unless otherwise noted.